Please Finish the following using Canadian Accounting version of Bank reconcilia
ID: 2394258 • Letter: P
Question
Please Finish the following using Canadian Accounting version of Bank reconciliation statement:
Neopolitan Ltd
Bank Reconciliation
July 31
Cash Balance Per Bank
$10670
Add:
Deposits in transit
1968
8702
Less:
Outstanding Cheques
2359
Reconciled Cash balancer per bank
6343
Cash Balance Per Books
Add:
EFT collections on Account
1276
Less:
NSF cheque and fee
Bank Service Charge
40
Reconciled Cash Balance Per books
USE THE FOLLOWING INFORMATION to complete or correct the above bank reconociliations statement
The following information is for Neopolitan Ltd in July
Cash balance per bank, July 31, $10,670
Cash balance per general ledger cash account, July 31, $8,953
Bank Service Charge, $40
Deposits in Transit, $1,968
Electronic receipts from customers in payment of their accounts, $1,276, not previously recorded by the company
Outstanding cheques, $2,359
Cheque #373 was correctly written in the amount of $890 but was incorrectly recorded by the company’s bookkeeper at $980.
Neopolitan Ltd
Bank Reconciliation
July 31
Cash Balance Per Bank
$10670
Add:
Deposits in transit
1968
8702
Less:
Outstanding Cheques
2359
Reconciled Cash balancer per bank
6343
Cash Balance Per Books
Add:
EFT collections on Account
1276
Less:
NSF cheque and fee
Bank Service Charge
40
Reconciled Cash Balance Per books
Explanation / Answer
Neopolitan Ltd Bank Reconciliation 31-Jul-18 Cash balance according to the bank statement $10,670 Add deposit in transit, not recorded by bank $1,968 $12,638 Deduct outstanding checks $2,359 Adjusted balance $10,279 Cash balance according to the company's records $8,953 Add receipts from customers not recorded $1,276 Add error in recording cheque $90 ($980-$890) $10,319 Deduct bank service charges $40 Adjusted balance $10,279 Yes, the bank reconciliation must always balance (reconcile) to an adjusted balance.